The CPI data for Australia, released at 00:30 GMT today, showed a 4.3% figure, which was 0.1% less than the anticipated 4.4%. CPI, representing changes in the costs of consumer goods and services, plays a crucial role in the Forex market. When the actual CPI exceeds the forecast, it is generally favourable for the Australian Dollar (AUD).
Analyzing the AUDUSD pair in the 1-hour timeframe, the price experienced an upward movement from 0.66821, coming within 5.6 pips of the established support, 0.66765. Currently, the price is positioned above the 0.66826 level, indicating that the CPI news influenced the AUDUSD movement positively. The price is now heading towards the established resistance at 0.67337 in the 1-hour timeframe.
In the event of the resistance being breached, there is a heightened likelihood of an upward trend in the 1-hour timeframe. Conversely, if the resistance rejects the price, there is an increased probability of the price reversing back to the support at 0.66765. Traders are prompted to observe their charts closely to determine whether AUDUSD is exhibiting a bullish or bearish trend today in the 1-hour timeframe.
Source: Forexfactory
